The shareholders equity accounts of Gennar Inc. at January 2, 2014, are as follows: Preferred shares, no

Question:

The shareholders’ equity accounts of Gennar Inc. at January 2, 2014, are as follows:
Preferred shares, no par value, cumulative, 4,000 shares issued ..... $ 200,000
Common shares, no par value, 125,000 shares issued ......... 2,500,000
Retained earnings ....................... 1,600,000
The following transactions occurred during the year:
March 10 Purchased a building for $ 3,000,000. The seller agreed to receive 20,000 preferred shares and 15,000 common shares of Gennar in exchange for the building. The preferred shares were trading in the market at $ 50 per share on that day.
July 1 Declared a semi-annual cash of $ 1.00 per common share and the required amount of dividends on preferred shares, payable on August 1, 2014, to shareholders of record on July 21, 2014. The annual of $ 2 per preferred share had not been paid in either 2013 or 2014.
August 1 Paid the cash declared on July 1 to both common and preferred shareholders.
December 31 Determined that net earnings for the year were $ 385,000.
Required:
1. Prepare journal entries to record the above transactions.
2. Prepare the shareholders’ equity section of Gennar’s statement of financial position as at December 31, 2014. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...